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Take-Two Projects Weak Q4 Bookings, Confirms Fall Launch for “GTA VI”

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Take-Two Interactive Software (TTWO.O) projected lower-than-expected fourth-quarter bookings on Thursday, attributing the decline to reduced in-game spending on mobile titles amid ongoing economic uncertainties and high inflation. The company expects bookings to fall between $1.48 billion and $1.58 billion, slightly under analysts’ average estimate of $1.54 billion, according to LSEG data.

The broader videogame industry has faced headwinds over the past two years, including layoffs, studio closures, and canceled projects, fueled by weak sales and higher borrowing costs. Take-Two’s mobile games like “Empires & Puzzles” performed below company expectations, reflecting a trend of consumers cutting back on mobile game spending.

Despite the short-term challenges, Take-Two’s stock rose over 6% in extended trading after the company confirmed that the highly anticipated “Grand Theft Auto VI” remains on track for a fall 2025 launch. The long-running action-adventure franchise is known for its immersive sandbox gameplay and dynamic characters, with each new installment being a major event in the gaming industry.

Wedbush Securities analyst Michael Pachter noted that confirmation of the launch date eased investor concerns about potential delays. Take-Two also reaffirmed expectations for higher net bookings in fiscal 2026 and 2027, driven by “GTA VI” and other major releases.

Beyond “GTA VI,” Take-Two is set to release several high-profile titles this year, including “Borderlands 4” and “Mafia: The Old Country.”

While the company’s third-quarter bookings of $1.37 billion fell short of the $1.39 billion consensus, Take-Two posted adjusted earnings of 72 cents per share, beating analysts’ expectations of 57 cents. The company also noted that Zynga, which it acquired in 2022, has nearly completed its integration into the Take-Two ecosystem and should contribute more significantly to profitability moving forward.

EA Forecasts Lower Q4 Bookings Amid Slowdown in Gamer Spending, Announces $1 Billion Share Repurchase

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Electronic Arts (EA) lowered its fourth-quarter bookings forecast on Tuesday, citing weaker-than-expected in-game spending, particularly for its popular “FC 25” soccer franchise. The company now anticipates bookings between $1.44 billion and $1.59 billion for the quarter, below the Wall Street estimate of $1.65 billion. This projection follows a previous reduction in its annual bookings forecast due to a slower-than-expected performance of “FC 25” and its new “Dragon Age” title, exacerbated by the ongoing economic challenges such as high inflation.

Despite the downturn in certain segments, EA remains confident in a recovery, with plans for future growth driven by multiple titles under development, including the next installment of its “Battlefield” series. CEO Andrew Wilson expressed optimism for a return to growth in fiscal year 2026 and beyond. Additionally, EA unveiled a $1 billion share repurchase program, which led to a 3% increase in its share price during extended trading hours.

In a move to enhance its sports offerings, EA recently acquired TRACAB Technologies, a company specializing in tracking technology, to further invest in its sports portfolio, which continues to be a key driver of revenue, particularly in American football titles. EA’s net bookings for sports games, including football, are expected to exceed $1 billion this fiscal year.

 

Nintendo Lowers Switch Sales Forecast Ahead of New Console Launch

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Nintendo (7974.T) has reduced its full-year sales forecast for the Switch console by 12%, now projecting only 11 million units sold as the device faces waning momentum ahead of the release of its successor later this year. Despite the decline, Nintendo remains focused on its console business, alongside its ventures into physical stores and expanding its brand with theme parks and films.

Nintendo President Shuntaro Furukawa acknowledged that while hardware and software sales remained solid for the eighth consecutive year, the company failed to meet its initial sales goals. For the period from April to December, Nintendo sold 9.54 million Switch units, bringing total sales to 150.86 million units.

The company previously announced plans to launch a successor to the popular Switch in 2025, with the unveiling scheduled for an upcoming Nintendo Direct event on April 2. The new device is expected to retain the hybrid design of its predecessor, which significantly revived Nintendo’s fortunes after the underperformance of the Wii U console.

As a result of the forecasted slowdown, Nintendo has lowered its operating profit estimate by 22.2%, bringing the expected figure to 280 billion yen ($1.8 billion) for the financial year ending in March. For the April-December period, the company saw a sharp 46.7% drop in profit, totaling 247.6 billion yen.